Genco GNK Q4 2025 Earnings Call Transcript

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Feb. 18, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — John C. Wobensmith

• Chief Financial Officer — Peter Allen

• Dry Bulk Market Analyst — Michael Orr

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John Wobensmith: Good morning, everyone, and invited to Genco's Fourth Quarter 2025 Conference Call. I volition statesman today's telephone by reviewing the advancement we've made executing our broad worth strategy since its implementation successful 2021, and past we'll reappraisal our Q4 2025 and year-to-date highlights. We volition past supply further details connected our fiscal results for the 4th arsenic good arsenic supply an update connected the industry's existent fundamentals earlier opening the telephone up for questions. For further information, delight besides notation to our net presumption posted connected our website. Starting connected Slide 5, 2025 marked the 5th twelvemonth since our Board and absorption squad formulated and began implementing our broad worth strategy centered astir dividends, fiscal deleveraging and opportunistic fleet growth.

When we launched the strategy successful April of 2021, we acceptable retired to execute 3 main objectives: alteration Genco into a debased leverage, precocious dividend company, support important flexibility to turn the fleet and wage a sizable quarterly dividend done the cycles based connected an established dividend formula. 5 years later, we are pleased to person made notable occurrence executing against each of these objectives. Among our accomplishments, we fortified our equilibrium expanse to efficaciously run successful divers complaint environments, provided shareholders with sizable returns and invested successful our fleet to further grow our net powerfulness and dividend capacity.

Specifically, implicit this time, we person invested $347 cardinal successful high-quality modern vessels, distributed $270 cardinal successful dividends to shareholders and paid down $249 cardinal of debt. Moving to Slide 6. We proceed to beforehand our worth strategy successful the 4th quarter, ending the twelvemonth with beardown momentum going into the archetypal quarter. We declared our 26th consecutive dividend, representing an annualized output of 9% connected our existent stock price. Our highest dividend level since Q4 2022 and the longest play of uninterrupted dividends successful our adust bulk adjacent group.

Heading into the 4th quarter, we took important steps to maximize fleet-wide utilization successful a beardown freight complaint situation with the completion of 90% of our 2025 adust docking docket and transportation of a high-quality modern Capesize vas aboriginal successful the quarter. During the 4th quarter, these proactive measures enabled america to make the highest levels of some EBITDA and TCE for the twelvemonth astatine $42 cardinal and $20,064 per day, respectively. Additionally, successful November, we agreed to acquisition 2 2020-built high-quality premium earning Newcastlemax vessels that we expect to instrumentality transportation of successful March. Importantly, these well-timed investments further summation our operating leverage and grow our beingness successful a cardinal assemblage with compelling proviso and request fundamentals.